Abstract:

Self-Help Groups are This study examines whether Self-Help Group (SHG) participation improves women’s financial behavior, household financial decision-making autonomy, entrepreneurial capability, and subjective financial well-being in rural Uttar Pradesh, India. Using cross-sectional survey data from 111 women, we conduct comparative analysis of SHG members vs non-members.

The findings present a nuanced picture. SHG women report significantly lower borrowing anxiety, greater peer encouragement, and higher perceived ease of starting a business compared to non-members. However, SHG participation does not significantly influence core financial behaviors such as budgeting, expense tracking, saving habits, or household decision-making autonomy, as well as Subjective wellbeing. Increased entrepreneurial intention and business engagement does not translate into improved subjective financial well-being for SHG members. Non-SHG members also report lower scores on behavioral parameters studied.

These results suggest that while SHGs strengthen psychological confidence and entrepreneurial orientation, they do not automatically enhance bargaining power within households or improve perceived financial wellbeing. The findings underscore the multidimensional nature of empowerment and indicate that credit access alone is insufficient to generate sustained welfare gains. The paper discusses necessary recommendations for enhancing the effectiveness of SHG functioning and interventions for non-SHG members.

Please choose your submission type: Full Paper

Primary Track: Sustainable and Responsible Business

Keywords: responsible business;entrepreneurship/enterprise;economics;survey

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Anand Pandey